Certain Net Lease Sectors Remain Strong Despite COVID-19 Uncertainty

Despite market volatility and uncertainty created by the COVID-19 pandemic, investor activity within the net lease space for specific uses and credits continues to remain relatively strong, albeit at levels lower than pre-COVID. The industry is anxious and unsure about the long and short term effects of this crisis, and no one can provide any clear answer as to what the near term holds. This crisis didn’t begin as one with deteriorating financial conditions or a collapse of credit. It’s a health care crisis that will, in turn, have an impact on virtually every corner of the economy. 

In SRS National Net Lease Group’s second quarter 2020 Net Lease Market Overview, we found that investor activity in the net lease space has remained strong for necessity-based uses, publicly-traded companies with strong financial positions, and uses such as quick-service restaurants (QSR) with drive-thrus.